Review tax rates on agri goods: Capt

Tribune News Service

Chandigarh, September 25

Chief Minister Capt Amarinder Singh has urged Prime Minister Narendra Modi to review the tax rates imposed on agriculture-related goods under the GST in order to provide relief to farmers.

In a letter to the PM, Capt Amarinder expressed concern at the increased rates of taxation imposed under GST on agricultural inputs, including implements and drip irrigation equipment, which had witnessed a hike from 5% under VAT to 18% under the GST.

The CM pointed out that VAT on fertilisers had been 2%, while the GST was 5-18%. The tax on insecticides had risen from 12.5% (VAT) to 18%. The GST in the case of tractors was 12-28%, while VAT had been 6.05%. The tax on micro nutrients had been doubled, while that on canned food items had increased from 5% (VAT) to 12% (GST).

He said increased taxation might hinder the adoption of micro-irrigation technologies under the Pradhan Mantri Krishi Sinchai Yojana instead of enabling the government to incentivise their adoption to conserve depleting water resources.